Stock markets experienced a largely subdued trading day on Tuesday, as intraday gains were erased, resulting in a flat close. Nevertheless, the Nifty 50 index managed to stay above the 24,300 mark. By the end of the session, the Sensex had risen marginally by 70.01 points to settle at 80,288.38. Among sectors, IT, and oil & gas gained while metals, and pharma were among top laggards.
Here are three stocks to buy on Wednesday, 30 April
Buy Shipping Corp of India (current market price ₹182.67)
- Why it’s recommended: SCI is now the largest Indian shipping company, offering a wide range of services including transportation of goods and passengers, offshore support, and more. With its diversified fleet and strategic partnerships, SCI is well-positioned to benefit from growth in global trade and logistics, making it a compelling long opportunity.
- Key metrics: P/E: 8.38; 52-week high: ₹384.20; Volume: 3.32M
- Technical analysis: Support at ₹172; Resistance at ₹250
- Risk factors: Dependency on global trade dynamics and fluctuations in freight rates could impact revenue. Additionally, geopolitical tensions and rising fuel costs may pose challenges.
- Buy at: CMP and dips to ₹180
- Target price: ₹198-206 in 1 month
- Stop loss: ₹177
Buy Punjab Chemicals and Crop Protection (current market price ₹1076.65)
- Why it’s recommended: The company, part of the pesticides and agrochemicals sector, has outperformed its peers recently. Despite mixed performance over different time frames, small-cap stocks are currently leading the market. It is positioned for growth as demand for specialty chemicals rises globally.
- Key metrics: P/E: 37.26; 52-week high: ₹1,575; Volume: 8,791
- Technical analysis: Support at ₹1,000; Resistance at ₹1,300
- Risk factors: Dependency on raw material costs and global trade dynamics could impact profitability. Regulatory changes and competition in the specialty chemicals market may also pose challenges.
- Buy at: CMP and dips to ₹1,100
- Target price: ₹1,180-1,225 in 1 month
- Stop loss: ₹1,020
But Apollo Pipes (current market price at ₹402.80)
- Why it’s recommended: Apollo Pipes is well-positioned to benefit from the growing demand in industrial and shipping sectors. It is a leading manufacturer of PVC pipes and fittings in India, with a presence in various sectors like plumbing, sanitation, and infrastructure. The charts are consolidating for the last few days and the revival in momentum calls us to initiate a long.
- Key metrics: P/E: 58.95; 52-week high: ₹694.75; Volume: 91,800
- Technical analysis: Support at ₹390; Resistance at ₹470
- Risk factors: Dependency on raw material costs and fluctuations in demand from industrial sectors, including shipping, could impact profitability. Additionally, competition in the piping and infrastructure market may pose challenges.
- Buy at: Above ₹408 and dips to ₹390
- Target price: ₹435-445 in 1 month
- Stop loss: ₹380
Stock Market on Tuesday
The stock market experienced a largely subdued trading day on Tuesday, as intraday gains were erased, resulting in a flat close. Nevertheless, the Nifty 50 index managed to stay above the 24,300 mark. By the end of the session, the Sensex had risen marginally by 70.01 points (0.09 percent) to settle at 80,288.38, while the Nifty edged up by 7.45 points (0.03 percent) to finish at 24,335.95. The broader indices, including the BSE Midcap and Smallcap, showed slight gains, maintaining alignment with the benchmark indices.
Reliance Industries continued to drive Nifty’s performance for a second consecutive day, achieving a market capitalisation increase of ₹1.5 trillion, marking a six-month high. Among the other top performers were Bharat Electronics, Tech Mahindra, Eternal, and Trent, while key laggards included Sun Pharma, ONGC, Coal India, UltraTech Cement, and Dr. Reddy’s Labs. Sector-wise, gains of 0.5-1% were noted in capital goods, consumer durables, IT, and oil & gas, while metals, power, telecom, and pharma sectors dipped by 0.5-1%.
Outlook for Trading
The market did its best over the last three days but has not managed to survive critical supports. However, the trends have managed to arrest any kind of selling pressure that emerged thus indicating that the overall markets continue to remain positive. A small body candle on Tuesday highlights the contemplation that we witnessed in Nifty clearly aimed to erase the nervousness in Nifty that had been holding back the revival.
After, some volatile movements the Nifty managed to give a better closing. Important supports to watch out for is a range that is getting built based on the option data between 24200 -24500 hinting at some strong Put writing emerging . Based on PCR data the negative bias is not ruled out yet and the short covering action that may follow based on global cues could help the market rise rapidly.
As a rise is being attempted, the resistances continue to remain at 24500, with the Max Pain Point at 24300 continuing to be a supporting part. The levels around 24500 would be the next hurdle that the index should attempt to conquer on the way up.
We have been witnessing some consolidation at lower levels and the range bound action that is getting created has pushed Nifty into a tight range. A move above this area is needed hence it would be a testing phase for the trends ahead. As some heavy Put writing has emerged at 24300 like we had mentioned yesterday thus calling for a possibility of a trended action today. The Put Call Ratio (PCR) remains below 1 in Nifty and BankNifty giving a sense of discomfort to the bullish camp as we head into tomorrow.
Currently, the ADX/DMI remains positive, and the small body candle formation at the 24300 levels is flashing the possibility that some bullishness may emerge. While evidence is taking time to establish its presence, small measures seem to be underway. As we are trading into the last trading day of the week, we can see from the chart below that a reaction from here could carry the prices higher. However, we still have to figure out the way ahead, we still have to bide our time as the last few sessions have been quite range bound.
View all stories by Raja Venkatraman here.
Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.
Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Taaza Khabar 247. We advise investors to check with certified experts before making any investment decisions.
